DAR File No. 41555

Administrative Services, Purchasing and General Services

Rule R33-25

Executive Branch Insurance Procurement

Notice of Proposed Rule

(Amendment)

DAR File No.: 41555
Filed: 04/27/2017 04:00:24 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose for the changes to this rule is to clarify the language of the rule and to bring the rule into compliance with the current Utah Procurement Code.

Summary of the rule or change:

The changes to this rule include correcting the use of the phrase "responsible solicitation response"; the addition of the provision that a procurement unit may use the standard procurement methods for insurance agents, brokers, and underwriting companies; the addition of the specification of what criteria a procurement unit should consider; the addition of the provision for procurement units to establish minimum requirements and score thresholds to qualify insurance agents, brokers, and underwriting companies; and the addition of the provision for the evaluation committee to make a recommendation for rejection of an agent, broker, or underwriting company based on certain conditions. The additional provisions are required by changes made to the Utah Procurement Code.

Statutory or constitutional authorization for this rule:

• Title 63G, Chapter 6a

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget as a result of the changes to this rule. The changes are to clarify the language of the rule, to bring the rule into compliance with the statutory changes, and correct minor grammatical errors.

local governments:

There are no anticipated costs or savings to local government as a result of the changes to this rule. The changes are to clarify the language of the rule, to bring the rule into compliance with the statutory changes, and correct minor grammatical errors.

small businesses:

There are no anticipated costs or savings to small businesses as a result of the changes to this rule. The changes are to clarify the language of the rule, to bring the rule into compliance with the statutory changes, and correct minor grammatical errors.

persons other than small businesses, businesses, or local governmental entities:

There are no anticipated costs or savings to persons other than small businesses, businesses, or local government entities as a result of the changes to this rule. The changes are to clarify the language of the rule, to bring the rule into compliance with the statutory changes, and correct minor grammatical errors.

Compliance costs for affected persons:

There are no anticipated costs to affected persons as a result of the changes to this rule. The changes are to clarify the language of the rule, to bring the rule into compliance with the statutory changes, and correct minor grammatical errors.

Comments by the department head on the fiscal impact the rule may have on businesses:

I have reviewed the changes to this rule, and I believe that there is no potential for fiscal impact on businesses as a result of the changes to this rule. The changes are to clarify the language of the rule, to bring the rule into compliance with the statutory changes, and correct minor grammatical errors.

Jared Gardner, Procurement Policy Board Chair

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Administrative Services
Purchasing and General Services
Room 3150 STATE OFFICE BLDG
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Alan Bachman at the above address, by phone at 801-538-3105, by FAX at 801-538-3313, or by Internet E-mail at abachman@utah.gov
• Kent Beers at the above address, by phone at 801-538-3143, by FAX at 801-538-3882, or by Internet E-mail at kbeers@utah.gov
• Jared Gardner at the above address, by phone at 385-646-4561, by FAX at , or by Internet E-mail at jbgardner@graniteschools.org
• Simone Rudas at the above address, by phone at 801-538-3240, by FAX at , or by Internet E-mail at srudas@utah.gov
• Fay Tan at the above address, by phone at 801-538-3524, by FAX at , or by Internet E-mail at ftan@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2017

This rule may become effective on:

06/21/2017

Authorized by:

Kent Beers, Director

R33. Administrative Services, Purchasing and General Services.

R33-25. Executive Branch Insurance Procurement.

R33-25-101. Applicability and Standard Procurement Method.

(1) This rule only applies to executive branch procurement units.

(2) All new or renewal insurance purchases will be made in accordance with this Rule and the Utah Procurement Code.[ In addition, ]

(3) A procurement unit may use the request for proposals procurement process set forth in Utah Code 63G-6a, Part 7 to award a contract for insurance agents, brokers, and underwriting companies.

(4) A procurement unit may consider the following [shall be considered]criteria to qualify agents, brokers, and underwriting companies to move on to a subsequent stage in a request for proposals procurement process:

(a) financial resources of agent, broker and underwriting company;

(b) quality of prior service rendered to the state;

(c) service facilities available in-state;

(d) service reputation;

(e) experience and expertise in providing similar types of insurance;

(f) coverages and services to be provided;

(g) qualifications of key personnel; and

(h) any other [reasonable factor]criteria [which]that will help to ensure[provide] the best possible coverage and service to the [purchasing agency]procurement unit.

(5) A procurement unit may establish minimum requirements and score thresholds to qualify agents, brokers, and underwriting companies to move on to a subsequent stage in the request for proposals procurement process.

(6) During the evaluation process, the evaluation committee may make a recommendation to the conducting procurement unit that an agent, broker, or underwriting company be rejected for being deemed not responsible, not meeting the mandatory minimum requirements, not meeting any applicable minimum score threshold or whose proposal is not responsive.

 

R33-25-102. Alternate Multiple Stage Bid Process.

(1) This rule only applies to executive branch procurement units.

(2) To avoid oversaturation of limited primary or reinsurance markets, a multiple stage bid process may be used at the option of the procurement unit.

([2]3) [All interested agents ]Agents,[and] brokers, and underwriting companies must be qualified according to the evaluation criteria described in R33-25-101.

([3]4) [No more than the]The three highest ranked agents, brokers, or [agents,]underwriting companies, as determined by the evaluation committee, will be [eligible]deemed qualified to proceed to the final stage.

([4]5) [Those]Agents, brokers or underwriting companies who are [eligible]qualified to proceed to the final stage must submit a list of markets in order of preference to the procurement unit. The procurement unit will, as equitably as practicable, assign no more than five and no less than three markets to each final bidder, based upon their preferences.

([5]6) [Eligible]Qualified agents, brokers or [agents]underwriting companies must then submit a responsive [and responsible ]bid for each assigned market.

([6]7) Upon receipt of the bids, the procurement and contract award shall be conducted in accordance with Part 6 of the Utah Procurement Code.

 

KEY: alternate multiple stage bid process, executive branch insurance procurement, procurement methods, government purchasing

Date of Enactment or Last Substantive Amendment: [July 8, 2014]2017

Authorizing, and Implemented or Interpreted Law: 63G-6a